Investment Highlights

• Preferred Equity Position – Flex Capital occupies a senior position in the capital stack relative to common equity, with priority rights to both equity return and cash flow distributions. This structure reduces downside exposure while offering attractive yield.
• Class A Multifamily Development – The project includes 324 units across four buildings, designed for modern living with a comprehensive amenity package—resort-style pool, clubhouse, fitness center, pet park, and more. The development is part of a larger mixed-use site with future medical and retail components.
• Construction Progress – Over 65% of construction is complete as of October 2024, with key milestones on track. Temporary Certificates of Occupancy for multiple phases are expected by Q2 2025, enabling leasing to begin ahead of full completion in September 2025.
• Strategic Entry Point – The Preferred Equity investment emerged from a capital stack rebalancing after the project's loan was adjusted to reflect current multifamily valuations. Flex Capital stepped in to fill the gap, providing structured capital without assuming direct development risk.

Investment Highlights

• Horizontal Well Development – Participation in a multi-project drilling program comprising multiple horizontal wells across distinct formations. The investment leverages next-generation well design and completion strategies to optimize efficiency and recovery.
• Core Basin Location – The wells are located in a proven, energy-rich basin in the western U.S., offering access to stacked resource formations with strong historical performance. The area is supported by extensive drilling history, established takeaway infrastructure, and favorable production economics.
• Low Geologic Risk Profile – Development targets include repeatable and historically productive formations, allowing for a shared-risk model across multiple wellbores. This approach is more akin to scalable resource extraction than speculative exploration.
• Operational Expertise – The joint venture involves collaboration with two experienced operators with a demonstrated track record in the basin. Flex Capital benefits from a structured, non-operating working interest position while relying on proven partners for execution.
• Tax-Efficient Structure – The investment includes significant upfront tax deductions through qualifying expenses, offering enhanced after-tax cash flow potential for qualified investors.

Capital Deployment Verticals

Capital is deployed across several complementary verticals:

• Lot Development – Strategic acquisition and entitlement of land in fast-growing suburban and exurban markets. These sites are positioned for future single-family and build-to-rent housing, addressing critical supply constraints.
• Build-to-Rent (BTR) & Multi-Family – Focused on purpose-built rental communities and mid-density multifamily projects designed to serve both workforce and lifestyle renters. These assets offer long-term income stability with institutional exit optionality.
• Short-Term Rentals – Targeting high-demand leisure markets with boutique-style, professionally managed STR properties that cater to remote workers, vacationers, and hybrid-use travelers. Designed for premium nightly rates and high occupancy.
• Storage – Investment in ground-up and adaptive reuse self-storage facilities in under-served local markets. These assets provide strong operating margins, steady demand, and a counter-cyclical income profile.

Investment Highlights

• Capital Stack Advantage – Positioned higher in the capital stack, Income Fund provides debt capital to experienced real estate operators and preferred partners. This senior position enhances downside protection relative to common equity while offering consistent income.
• Cash Flow Predictability – The fund is designed to deliver cash flow distributions. This structure supports income-focused objectives and aligns with Flex Capital's emphasis on liquidity and financial visibility.
• Shorter-Term Duration – With a defined, shorter-term exit strategy, the fund allows Flex Capital to remain agile—reallocating capital as market conditions evolve and new opportunities emerge.
• No Participation in Upside – This investment is structured purely as a debt-based opportunity, focusing on reliable income over speculative equity appreciation. The fund is not exposed to backend profit variability.

Allocation Strategy

The fund is deployed across four distinct yet complementary verticals, each offering a differentiated risk/return profile:

• 35% GP Co-Investments – Flex Capital participates in select GP-led deals, gaining access to both limited partner returns and promote-level economics. These investments offer enhanced upside with favorable alignment, typically alongside experienced operators in value-add or opportunistic strategies.
• 35% Distressed Real Estate – Focused on acquiring distressed or special situation assets—often in transitional phases—where capital scarcity or sponsor distress presents opportunities to acquire below intrinsic value. Emphasis is placed on risk-adjusted returns, not just headline IRR.
• 20% Performing Private Debt – Strategic allocations to income-producing private debt instruments, providing consistent, cash-flowing yield while maintaining a favorable senior position in the capital stack. Ideal for enhancing fund-level liquidity without sacrificing credit discipline.
• 10% Non-Performing Loans (NPLs) – Opportunistic purchases of real estate-secured non-performing loans, where Flex Capital leverages restructuring or resolution strategies to unlock stabilized returns and underlying asset value.

Investment Highlights

The fund is deployed across four distinct yet complementary verticals, each offering a differentiated risk/return profile:

• Fully Leased Industrial Asset – ~25,000 SF building with a blend of warehouse and office space, situated on a 2-acre lot. Features include dock-high and drive-in access and clear heights conducive to logistics and light industrial use.
• Logistics-Focused Location – Positioned within one of Texas's major metro areas experiencing rapid industrial expansion. The property benefits from excellent connectivity to key transportation routes and access to a growing labor pool and customer base.
• Triple Net Lease (NNN) – The asset is leased to a national-scale tenant under a NNN structure, minimizing landlord responsibilities and delivering predictable, low-maintenance cash flow.
• Durable Income with Growth Potential – The current lease runs through 2026, with multiple renewal options. Flex Capital sees potential for future upside as market rents continue to rise across Texas's industrial corridors.

Investment Highlights

• Institutional-Quality Asset in a Core Urban Corridor – The property comprises ~85,000 SF across three fully leased units, anchored by a nationally recognized grocer and complemented by soft-goods and beauty retailers with strong consumer brand presence. The center benefits from excellent visibility and access along a major metro highway, with proximity to dense residential neighborhoods and key retail nodes.
• Stabilized Income Backed by National Tenants – All tenants are secured under long-term leases, with staggered expirations and renewal options. The grocer, already paying rent, is expected to open in late 2025—unlocking additional value through cap rate compression. Current income is underpinned by predictable, low-volatility lease structures.
• Embedded Growth via Pad Expansion and Lease Uplift – An approved expansion pad allows for up to 6,400 SF of additional retail, with potential to add over $200K in net operating income. In parallel, anticipated rent growth and future lease renewals position the asset for enhanced long-term yield and valuation.
• Attractive Urban Demographics and Market Fundamentals – Located within one of Boston's most established retail corridors, the center serves a trade area of nearly 250,000 residents with median household incomes above $90,000. Retail rents in this submarket remain among the highest in the region, and new development is limited, driving tenant retention and long-term demand.

Investment Highlights

• Grocery-Anchored, Credit-Backed Tenancy – The ~118,000 SF center is anchored by a national discount grocer and supported by a complementary mix of essential retailers including Tractor Supply, Dollar Tree, and an off-price soft goods chain. These tenants contribute more than 75% of gross income and are secured by long-term leases with high-credit counterparts.
• Stabilized Occupancy with NNN Lease Structure – Currently 92% occupied, the property features a weighted average lease term exceeding nine years. Most tenants operate under triple-net (NNN) leases, offering predictable cash flow with minimal landlord responsibility.
• Value Creation Through Lease-Up and Rent Growth – The property includes 9,500 SF of available space and more than 75,000 SF of below-market leases, providing dual levers for net operating income growth through lease-up and contractual escalations.
• High-Retention Market with Economic Resilience – Positioned in a rural corridor serving over 150,000 residents, the center benefits from strong household income levels, limited retail competition, and consistent traffic along a major regional thoroughfare. Retail vacancy in the area remains low, supporting tenant retention and long-term leasing demand.

Strategic Location at the Heart of Growth

The project is situated in one of the most active economic corridors in the Western U.S., a zone now home to large-scale investments from Apple, Meta, Google, Amazon, and Boeing. The surrounding area features more than 12 million square feet of high-tech industrial and office development and is supported by over 1,000 acres of master-planned residential growth.

Located within a vibrant new mixed-use destination, the hotel will directly benefit from built-in foot traffic and visibility driven by on-site retail, dining, fitness, and entertainment. National brands such as Starbucks, AVEDA, and Discount Tire — alongside a 55,000-square-foot indoor trampoline and sports park — enhance the energy and daily draw of the site.

Hospitality Designed for Today's Traveler

With 107 guest rooms, a rooftop restaurant and bar, resort-style pool, and meeting space, the hotel introduces a lifestyle-forward hospitality experience to a market that remains notably undersupplied in the upper-midscale segment. Its brand affiliation ensures access to national reservation networks, customer loyalty programs, and proven operating systems — all while maintaining lean operating efficiency through a select-service model.

While hotel development across Greater Phoenix has accelerated, most new supply skews toward either full-service or economy segments. There are currently no comparable select-service hotels under construction within this specific trade area.

Demand Anchored by Real Infrastructure

The site is located within a 10-minute drive of:

• A 320-acre amateur sports and event complex — one of the largest of its kind in North America — drawing over 20,000 athletes and spectators annually and contributing thousands of room nights each year.
• A regional airport that handled over 1.9 million passengers in 2023, with record-breaking traffic and new terminal expansions underway.
• Multiple higher education and healthcare campuses, including university research facilities and regional medical centers — all within a six-mile radius.

The broader region welcomes more than 45 million visitors annually, driven by spring training, youth sports, medical travel, outdoor recreation, and regional conventions. The hotel benefits from strong freeway visibility and sits within close reach of major demand generators across both weekday and weekend segments.